Money Talks: Holiday Fraud - How to Protect Yourself and Stay Safe This Season
The holiday season is a time of joy, family, and celebration. However, it’s also a time when fraudsters take advantage of people’s generosity and the frenzy of gift-giving and travel.
Here’s a helpful checklist of what to do if you fall victim to fraud or online scams: https://static.twentyoverten.com/602be1441e605b3e71d57908/0kHxm34gQwj/Fraud-Checklist.pdf
How to Recognize Holiday Fraud
- Use Secure Payment Methods
When shopping online, use a secure payment method such as credit cards or trusted services like PayPal. These methods provide better fraud protection than direct transfers or debit card payments.
- Suspicious links and emails:
Always be cautious when clicking on links in unsolicited emails, texts, or pop-ups. Check the sender’s email address and ensure the website link is from a legitimate, trusted source.
- Pressure tactics:
Scammers may create a sense of urgency, claiming that you must act quickly to secure a deal or avoid a penalty. Be wary of high-pressure tactics, especially if you’re unfamiliar with the company or individual.
- Unsolicited donation requests:
Scammers often impersonate well-known charitable organizations. Before donating, research the charity and ensure that it’s reputable. Websites like Charity Navigator can help you verify legitimate organizations.
How to Protect Yourself from Holiday Fraud
- Use Secure Payment Methods
When shopping online, use a secure payment method such as credit cards or trusted services like PayPal. These methods provide better fraud protection than direct transfers or debit card payments.
- Keep Software and Security Up-to-Date
Ensure your computer, smartphone, and any apps you use for shopping are up-to-date with the latest security patches. Install antivirus software and enable two-factor authentication on accounts wherever possible.
- Verify Website URLs
Before making any purchase online, check the website’s URL for accuracy and ensure it starts with https:// — the “s” stands for secure. Additionally, look for a padlock icon next to the URL, which signals a secure connection.
- Don’t Share Personal Information
Avoid sharing personal information, such as passwords, Social Security numbers, or credit card details, over unsecured communication methods. Legitimate companies will never ask for sensitive details through email or text.
- Be Cautious About Gift Cards
If someone asks you to buy a gift card or provide the card number as payment, be extremely cautious. No legitimate company or government agency will ask you to pay via gift cards.
- Monitor Your Accounts
Frequently check your bank statements and credit card accounts for any suspicious transactions. Early detection is key to minimizing damage.
FAQs About Holiday Fraud
What should I do if I think I’ve fallen for a holiday scam?
Immediately report the incident to your bank or credit card company to prevent further losses. You should also contact the company or website where you made the purchase and file a complaint with the Federal Trade Commission (FTC) or your local consumer protection agency.
How can I identify a fake charity?
Verify the charity by researching it online through reputable sources like Charity Navigator, BBB Wise Giving Alliance, or GuideStar. A legitimate charity will be transparent about how donations are spent.
Is it safe to shop on unfamiliar websites during the holidays?
If you’ve never heard of the website or don’t feel sure about its legitimacy, do some research before making a purchase. Look for customer reviews and check the website’s security. If it doesn’t seem secure or professional, it’s best to avoid it.
How can I protect my children from holiday scams?
Teach your children about the dangers of online scams, especially those related to games, social media, or email. Monitor their online activities and set parental controls on devices to help filter out risky sites.
What should I do if I receive an unsolicited email asking for a donation?
Be cautious of unsolicited donation requests. Verify the organization by contacting them directly using the official contact information on their website. Do not click on any links in unsolicited emails.
Investment advisory services offered through The GenWealth Group, Inc., a registered investment advisor. Information provided is not intended as tax or legal advice and should not be relied on as such. You are encouraged to seek tax or legal advice from an independent professional.